MPs call for banking hubs to sell stamps to counter Post Office closures

Banking hubs should offer postal services to compensate for the closure of crown Post Office branches, MPs have said, as they criticised how the proposed shutting of sites has been handled.

The Commons heard that some banking hubs, run by the Post Office, had spaces to offer extra services but their remit had not been extended.

It came amid months where banks have announced the closure of high street branches, the Post Office said it could shut 115 of its Government-owned crown branches, and WH Smith, which is responsible for running some Post Office franchises, announced it was putting 500 of its high street stores up for sale.

Banking hubs were set up by the previous Conservative government to counter the dwindling number of high street banks, but the agreement between banks – who fund the initiative – and the Post Office does not allow them to offer postal services.

Liberal Democrat MP Gideon Amos (Taunton and Wellington) said offering more services could help keep people’s access to cash and support the postal service.

He told the debate on the future of local post offices: “There’s an obvious and straightforward solution.

“We should be allowing banking hubs to offer postal services. There’s no fundamental reason why they can’t. They already have Post Office tills, Post Office systems, and they’re run by postmasters, they’re staffed by Post Office staff.

“Even the one in Wellington has two banking desks and a space for a third desk… a post office would be a very good candidate.”

Mr Amos added: “There are 76 banking hubs in the UK. We could significantly increase provision of post offices at very little cost.”

He continued: “Post offices are too important to be left to uncertainty. Government must act now to safeguard these vital institutions, ensuring that towns like Wellington and so many more do not remain without essential services.”

Conservative MP Rebecca Smith (South West Devon) said: “There is the option of banking hubs, and obviously the work of the Conservative government to trailblaze this modern solution for communities has helped remarkably.”

Ms Smith added: “There’s clearly an appetite, there’s clearly a need. But it doesn’t make sense to the public that you pitch up, it says Post Office outside, but you can’t even buy a stamp inside.”

Labour MP Alex Mayer (Dunstable and Leighton Buzzard) raised the issue of WH Smith’s proposed sale.

Ms Smith had earlier told MPs Plymstock had lost a franchised post office when Morrisons closed its convenience store outlets, including in her constituency.

Ms Mayer said: “The recent announcement by WH Smith, which hosts around 200 Post Office counters, has raised concerns about whether third-party takeovers truly are a long-term solution.”

Liberal Democrat MP Alistair Carmichael said the last crown branch in his Orkney and Shetland constituency was listed for closure, and said the Post Office’s conduct had been a “disgrace”.

He said: “It has been totally lacking in respect for their own employees and the communities that they are there to serve.

“At a time where you would have hoped that the Post Office might be willing or wanting to demonstrate a change of culture for reasons that will be obvious enough, to see them still behaving in this way, in my community, makes me think all the fine words about changed culture within the top of the Post Office are simply weasel words and absolutely meaningless.”

Reform UK MP Richard Tice (Boston and Skegness) said post offices provide a support network for vulnerable and isolated people, and said pubs could house branches.

Mr Tice told the Commons: “If someone doesn’t appear on their regular day, their timely slot, they might just say, ‘where’s Mrs Smith’, and that’s a massively important part of our communities.

“And so, it’s not just about money, it’s about the asset value within that community of what post offices give us.”

Conservative shadow trade minister Dame Harriett Baldwin said: “Labour’s budget of broken promises is threatening the network. Whether it’s the national insurance jobs tax, the hike in business rates, or the incoming employment regulations, Labour are hiking the cost of doing business.”

Post Office minister Gareth Thomas said: “I know there is concern about the future of DMBs (directly managed branches), I think it’s important here to underline that no definitive decisions have been taken on the future of any individual directly managed branch.

“I have made clear to the Post Office that there must be discussions with unions and other key stakeholders, and I’m pleased to hear that the Post Office has seen positive engagement from independent postmasters and strategic partners who have expressed their interest in taking on DMBs.”